The Welsh Government has proposed that more categories of properties will be excepted from paying the council tax premium on second homes, managing the impact of new local tax rules to distinguish between second homes and self-catering accommodation.
There will also be additional guidance on the discretion local authorities will have in the application of the premiums. It follows ongoing discussion and engagement with councils, communities and the tourism industry.
The tax changes, which will be in place from 1 April 2023, are intended to develop a fairer housing market and ensure owners make a fair contribution to the communities in which they own homes or run businesses. The changes provide a clearer demonstration that the properties concerned are being let regularly as part of genuine holiday accommodation businesses.
The criteria for self-catering accommodation being liable for non-domestic rates instead of council tax is increasing from being let for at least 70 days in any 12 month period to being let for at least 182 days.
The change announced today (11 November 2022) will mean two further categories of property will be exempt from council tax premiums if they no longer meet the letting criteria. It will apply to all properties that are restricted by planning conditions which mean that they can only be used as short-term holiday lets or which prevent them from being used as someone’s main residence.
For further information please select the following link: Additional flexibility in the application of council tax premiums and letting criteria | GOV.WALES